Nairobi writer on Banking, Finance, Technology, and Investments

Tag Archives: CFA

Today Senegal celebrates its independence; strangely enough, I am not in a celebratory mood. 50+ years of so-called independence, the more things are the same.

I am somehow very encouraged by President Alpha Conde’s and Kabore’s recent remarks, which makes me think that something is brewing…I had posted an article in a private forum and feel the need to share it with a bigger audience in hope to widen the tent that will lead our leaders to the waters…Here you go..“If you want your independence then take it”, uttered De Gaulle in 1958 frustrated by young men heckling him. Independence was given a few years later, but independence was not gained, as the terms were never negotiated in good faith but dictated by France and the CFA became a by-product of that.

At recent events, the Minister of Economy of Senegal suggested that Senegal is not considering dropping the CFA, which given the current climate, to me is a political response to an economic problem.

In contrast the President of Chad, Idriss Debby landed on the opposite side of the argument, and clearly established himself as the only head of state siding with a growing number of Africans, who have come to accept that Africa cannot be truly independent if its financial system is controlled in France.

In many parts of Francophone Africa, there is an emerging sense that economic growth cannot happen without economic independence especially with 50% of CFA member countries reserves being deposited into the French coffers. Such an awareness implies that people are ready for an alternative and a clean departure from the CFA and transition into an independent currency.
A move like this has to be strategic and deliberate simply because doing away with 70 years of political and economic control, will not be without peril. The French economy came out of its economic crisis after World War II in big part because of the CFA and relies on this system of exploitation to remain a strong economy in Europe.

Therefore, dropping the CFA, without a clear well laid out plan and implementation strategy might not be a winning strategy, but a knee-jerk reaction. It is also important that we take timeless lessons from previous movements that called for change such as the Arab Spring, Occupy Wall Street etc. These movements were well-meaning and all called for positive changes, but they were all reactive and started without a clear end game and solid alternative in place.

So my question is how do we form a coherent strategy consistent with the efforts already being put forth on the ground, and overcome the challenges ahead? Here is a summary of what I think might be a good starting point:

Understand the forces at play: Understanding the lay of the land, including the historical backdrop, the parties involved will help us not duplicate efforts and coordinate our efforts to support the different fronts that are on the ground presently. The first step should be to research and take stock of all the current issues, what the movements are doing, including the Front contre le Franc CFA, led by people like Kemi Seba, who have been fighting the good fight for years now.

Build on strengths of the movements already on the ground: A number of organizations have been laying the ground for years, but efforts have not been coordinated enough to reach a critical mass. I think the time is ripe and we can build on the January 7, 2017, events that were synchronized in Paris, Abidjan Dakar etc.… Some research will be beneficial in order to know what people are doing and what is working, and what is not. Based on this information a framework can be built for how we can contribute positively to the cause. However, so far it seems the conversation has not gone beyond denouncing and asking for the end of the monetary servitude, for I am yet to see any concrete steps that lay a blueprint of how to achieve this objective and the ultimate goal of self-determination.

Develop a framework to complement these efforts: The framework should consider an end game, formalize the necessary steps, and then develop an initial response to potential challenges for each step. The benefit to this approach is that it allows us to look ahead, identify, anticipate and help us adapt to changing situations.

Educate ourselves and inform others, to build a critical mass: The only way to be effective is to have a full understanding of the high and low points of what an independent currency would bring in terms of positive changes. There are several resources from African born experts who have written and spoken extensively on the subject, such as Nicolas Agbohou who wrote “Le franc CFA et L’euro contre l’afrique,” Demba Moussa Dembele, author of “Sortir l’afrique de la servitude monetaire” and many others. There are also many short and easily digestible videos available on the subject.

Enlist Monetary Policy and Economic development experts: We need to know what our competencies are, and seek out outside experts such as Dr. Abdourahmane Sarr President at the Center for Local Economic Development Financing (CEFDEL), on areas where we do not have either an expertise or sound plan in place. A winning proposition will have to add something positive to the debate, therefore it is important to know what are the winning strategies being currently executed and try to complement the gaps we can identify.

Craft a value proposition to engage those on the sidelines: Assuming that despite framing the value a departure from the CFA will bring, we do not succeed in getting people to get involved, we should be able to pivot and appeal to people’s selfish nature, and what they personally stand to gain, for example: If a person lives in the US, and sends money home monthly, could they be swayed if they see that they monthly remittances can drop considerably? If the person lives in Senegal and wants to start a business or grow their business, could we explain how this will possibly affect access to capital and help them export?

Attack the CFA weaknesses and offer alternatives: Every solution has weak points and every problem presents new opportunities. Let’s list these out, and take the message within our networks and above. Winning people’s support and buy-in will build momentum and bolster enough support to put pressure on our leaders to hold referendums and in term force on the hand of France to accept new terms in its relationship with its former colonies.

Negotiate a win-win economic partnership with France: Coming up with a creative offer for France will be a better solution than a confrontation, which will simply be suicidal, and will lead to more destruction of our economies. Let’s capture our imagination, if you have ideas or know others who might have ideas on how we can give incentives to France to accept a different partnership agreement that can allow both parties to benefit, please share these ideas.

If you subscribe to this vision, I challenge you to engage people in your networks, one conversation at the time. The lives of close to 150 million people depends on this, so if you are from Benin, Burkina Faso, Guinea-Bissau, Ivory Coast, Mali, Niger, Senegal, Togo Cameroun, Central African Republic, Chad, Republic of Congo, Equatorial Guinea, Gabon, or know someone from those countries, get educated, get involved and be the change you want to see.